SAN JOSE : CAPITAL OF SILICON VALLEY

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1 COUNCIL AGENDA: 06/28/16 ITEM: \V \ CITY OF ZmSt SAN JOSE : CAPITAL OF SILICON VALLEY CITY COUNCIL STAFF REPORT File No. C Applicant: Eric Roberts Location Quinn Avenue and 2269 Will Wool Drive Existing Zoning A(PD) Planned Development Proposed Zoning LI Council District 7 Historic Resource No Annexation Date: February 17,1982 CEQA: Determination of Consistency with the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No ) and Final Supplemental Environmental Impact Report (Resolution No ). APPLICATION SUMMARY: Conventional Rezoning from the A(PD) Planned Development Zoning District to the LI Light Industrial Zoning District on an approximately 7.23-gross acre site. RECOMMENDATION: Staff recommends that the City Council consider the Determination of Consistency with the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (Resolution No.76041), and the Final Supplemental Environmental Impact Report (Resolution No.77617), and approve the Conventional Rezoning. 1X1 Consistent Q Inconsistent LU-6.5, IP-1.6 General Plan Land Use Zoning District Warehouse and Storage

2 June 6, 2016 Page 2 Open Space, Parklands and Habitat A(PD) Planned Development LI, A(PD) Planned Development Coyote Creek Warehouse and Storage r<>\ vi.s * Action File No. PDC81-005: Rezoning from CO Commercial Office and M-l Light Industrial Zoning Districts to A(PD) Planned Development Zoning District. Site annexed into the City of San Jose (McKinley No. 91). File No. PD83-046: Planned Development Permit for new industrial buildings on a 7.23-gross acre site. File No. PRE16-016: Preliminary Review application proposing a brewery, distillery, tasting and tap room that can also host private parties and events at 695 Quinn Avenue, Building C. IBlMEiMESCRlPTION ' ' On April 19, 2016, the applicant applied for a rezoning of the subject 7.23-gross acre site (see Attachment) from the A(PD) Planned Development Zoning District to the LI Zoning District. The existing A(PD) Planned Development Zoning District (File No. PDC81-005) allows permitted, conditional, and special uses of the IP Industrial Park Zoning District, as adopted in the 1981 Zoning Ordinance, such as light manufacturing, warehouse, and office uses. The proposed rezoning will allow all of the permitted, conditional, and special uses of the LI Zoning District in the current Zoning Ordinance. The applicant proposes to rezone the property in order to operate a distillery and brewery in an existing building on-site. Distilleries, breweries, and wineries are not enumerated or permitted uses under the 1981 IP Industrial Park Zoning District, but are permitted uses in the LI Light Industrial Zoning District in the current Zoning Ordinance. Site Location and Description The site is located at the easterly terminus of Quinn Avenue, at Quinn Avenue and 2269 Will Wool Drive (See Figure 1). The site is generally surrounded by industrial uses with warehouse and storage buildings to the north, south, and west, and Coyote Creek to the east. The subject 7.23-gross acre site consists of sixteen buildings with various industrial uses and a historical building, generally known as the "Wool Residence." The Wool Residence building is listed as an Identified Structure in the City's Historic Resources Inventory and is currently used as a residence. The 1981 Planned Development Zoning District required the preservation of this building to be used as a residence, museum, or an office.

3 June 6, 2016 Page 3 Figure 1: Site Location Map Envision San Jose 2040 General Plan Conformance The Envision San Jose 2040 General Plan Land Use/Transportation Diagram designation for the subject site is (See Figure 2). This designation is intended for a wide variety of industrial uses and excludes uses with unmitigated hazardous or nuisance effects. Warehousing, wholesaling, and light manufacturing are examples of typical uses in this designation. Light Industrial designated properties may also contain service establishments that serve only employees of businesses located in the immediate industrial area. Office and higher-end industrial uses, such as research and development, are discouraged in order to preserve the scarce, lower-cost land resources that are available for companies with limited operating history (start-up companies), or lower cost industrial operations. The proposed rezoning from the A(PD) Planned Development Zoning District to the LI Zoning District will bring the property into conformance with the Envision San Jose 2040 General Plan land use designation and will allow industrial uses, including distilleries, breweries, and wineries.

4 June 6, 2016 Page 4 Figure 2: General Plan Map In addition to conforming to the Envision San Jose 2040 General Plan Land Use/Transportation Diagram, the proposed rezoning is consistent with the following General Plan policies: 1. Land Use Policy LU-6.5: Maintain and create and Heavy Industrial designated sites that are at least one acre in size in order to facilitate viable industrial uses. Analysis: The proposed rezoning will continue to designate the project site for industrial uses, which preserves the site's fiscal viability. The rezoning will also allow a broader range of light industrial uses, including a distillery and brewery. The LI Zoning District will allow the site to be developed in accordance with standard development regulations, creating a more flexible and desirable industrial property that promotes the City's fiscal and economic goals and vision. 2. Implementation Policy IP-1.6: Ensure that proposals to rezone and pre-zone properties conform to the Land Use/Transportation Diagram, and advance Envision General Plan vision, goals, and policies. Analysis: Rezoning the subject property to the LI Zoning District will maintain the existing uses of land available for industrial purposes and allow additional uses such as distilleries, breweries, and wineries. The proposed rezoning of the site will bring the zoning of this property into conformance with the General Plan designation and provide greater flexibility and opportunities for development. Zoning Ordinance Conformance The proposed rezoning conforms to Table 20-50, Section of the San Jose Municipal Code. The LI Zoning District is the conforming zoning district to the Light Industrial General Plan Land Use/Transportation Diagram designation. Several parcels within close proximity to the subject site are zoned LI and have existing warehouse and storage uses (see Figure 3).

5 June 6,2016 Page 5 Figure 3: Zoning Map The LI Zoning District allows a multitude of industrial uses, including light industrial manufacturing, assembly, warehouse and distribution uses, breweries and wineries, general business offices, research and development, and certain industrial services such as photo processing, printing and publishing. The proposed rezoning will allow light industrial uses and allow the operation of distilleries and breweries as permitted uses. A tasting or a tap room in conjunction with a distillery or brewery would require a Conditional Use Permit. The applicant previously filed a Preliminary Review application (File No. PRE16-016), to receive staff input on the proposed distillery and brewery, and plans for a future tasting and tap room to host private events. The applicant filed this application to rezone to LI, to allow for brewery and distillery as permitted uses, and understands that the future tasting/tap room would require a Conditional Use Permit. There is no application on file for a Conditional Use Permit. As a result of this rezoning, existing uses legally established under the current Planned Development Zoning District would become legal nonconforming uses, including any existing non-industrial uses in the Wool Residence building. A legal nonconforming use that is discontinued or abandoned for more than 18 months loses its legal nonconforming status. Existing uses conforming to the proposed LI Zoning District may continue to operate. (. \l.lnorma ENVIRONMENTAL QUALITY ACT (CEQA) The proposed Conforming Rezoning will change the current A(PD) Planned Development Zoning District to the LI Zoning District. It will allow a broader range of light industrial uses, including a distillery and brewery. No new or more significant environmental impacts beyond those identified in the Envision San Jose 2040 General Plan Final Program Environmental Impact Report (FEIR) and Supplemental Environmental Impact Report (SEIR) have been identified, nor have any new mitigation measures or alternatives which are considerably different from those analyzed in the FEIR and

6 June 6,2016 Page 6 SEIR been identified. Pursuant to Section of the CEQA Guidelines, the City of San Jose has determined that the proposed rezoning is pursuant to, in furtherance of, and within the scope of the Envision San Jose 2040 General Plan program, the impacts of which were analyzed and disclosed in the FEIR for the Envision San Jose 2040 General Plan, for which findings were adopted by City Council Resolution No on November 1, 2011, and Final Supplemental Environmental Impact Report (SEIR) adopted by City Council's Resolution No , on December 15, The FEIR and SEIR were prepared for the comprehensive update and revision of all elements of the City of San Jose General Plan, including an extension of the planning timeframe to the year The proposed rezoning does not involve new significant effects beyond those analyzed in the FEIR and SEIR. AMJBLIC HEARING T^QTIFIC)ATION. In order to inform the public of the proposed project, staff followed Council Policy 6-30: Public Outreach Policy. A notice of the public hearing was distributed to the owners and tenants of all properties located within 500 feet of the project site and posted on the City website. The City Council Staff Report is also posted on the City's website. Staff has been available to respond to questions from the public. /s/ HARRY FREITAS, DIRECTOR Planning, Building and Code Enforcement For questions, please contact Steve McHarris, Planning Official, at (408) Attachment: Plat Map

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